I'm missing something--I just know it. Insights?

[Rachel L Gaither]

I am in the stage of deal finding and analyzing. I would love to get into multi-units, and due to the lack of multi-units for sale in my area, I've fallen into looking at single family homes with 3-4 bd, 2+ baths, and analyzing properties that could be split into 2 or more units without too much rehab expense.

Does anyone have any experience in this area? Some of these deals appear to have a really good profit margin, despite the fact that all the utilities need to be included (because they can't be split). I feel like I must be missing something--maybe I don't have a full grasp on the rehab budget situation, or something that's not occurring to me. What are some of the pitfalls you've experienced in attempting this type of project?